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[[File:lighterstill.jpg]][[File:Corporations.jpg|right|frame]]

==Origin==

==Origin==

*3: an association of employers and employees in a basic [[industry]] or of members of a [[profession]] organized as an organ of [[political]] [[representation]] in a corporative [[state]]

*3: an association of employers and employees in a basic [[industry]] or of members of a [[profession]] organized as an organ of [[political]] [[representation]] in a corporative [[state]]

==Description==

==Description==

A '''corporation''' is created under the [[laws]] of a [[state]] as a separate legal entity that has [[privileges]] and [[liabilities]] that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct [[business]]. Early corporations were established by charter (i.e. by an ''ad hoc'' act passed by a parliament or [[legislature]]). Most [[jurisdictions]] now allow the creation of new corporations through registration.

A '''corporation''' is created under the [[laws]] of a [[state]] as a separate legal entity that has [[privileges]] and [http://en.wikipedia.org/wiki/Liability liabilities] that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct [[business]]. Early corporations were established by charter (i.e. by an ''ad hoc'' act passed by a parliament or [[legislature]]). Most [[jurisdictions]] now allow the creation of new corporations through registration.

An important (but not [[universal]]) contemporary feature of a corporation is [http://en.wikipedia.org/wiki/Limited_liability limited liability]. If a corporation fails, shareholders may lose their [[investments]], and employees may lose their jobs, but neither will be liable for [[debts]] to the corporation's creditors.

An important (but not [[universal]]) contemporary feature of a corporation is [http://en.wikipedia.org/wiki/Limited_liability limited liability]. If a corporation fails, shareholders may lose their [[investment]]s, and employees may lose their jobs, but neither will be liable for [[debts]] to the corporation's creditors.

Despite not being [[natural]] [[persons]], corporations are recognized by the [[law]] to have rights and [[responsibilities]] like natural persons ("people"). Corporations can exercise [http://en.wikipedia.org/wiki/Human_rights human rights] against real [[individuals]] and the [[state]], and they can themselves be [[responsible]] for human rights [[violations]]. Corporations are conceptually [[immortal]] but they can "die" when they are "dissolved" either by statutory operation, order of [[court]], or [[voluntary]] [[action]] on the part of shareholders. [http://en.wikipedia.org/wiki/Insolvency Insolvency] may result in a form of corporate 'death', when creditors force the liquidation and dissolution of the corporation under court order, but it most often results in a restructuring of corporate holdings. Corporations can even be [[convicted]] of [[criminal]] offenses, such as [[fraud]] and [http://en.wikipedia.org/wiki/Manslaughter manslaughter].

Despite not being [[natural]] [[persons]], corporations are recognized by the [[law]] to have rights and [[responsibilities]] like natural persons ("people"). Corporations can exercise [http://en.wikipedia.org/wiki/Human_rights human rights] against real [[individuals]] and the [[state]], and they can themselves be [[responsible]] for human rights [[violation]]s. Corporations are conceptually [[immortal]] but they can "die" when they are "dissolved" either by statutory operation, order of [[court]], or [[voluntary]] [[action]] on the part of shareholders. [http://en.wikipedia.org/wiki/Insolvency Insolvency] may result in a form of corporate 'death', when creditors force the liquidation and dissolution of the corporation under court order, but it most often results in a restructuring of corporate holdings. Corporations can even be [[convicted]] of [[criminal]] offenses, such as [[fraud]] and [http://en.wikipedia.org/wiki/Manslaughter manslaughter].

==Crticism==

==Crticism==

As [http://en.wikipedia.org/wiki/Adam_Smith Adam Smith] pointed out in the [http://en.wikipedia.org/wiki/Wealth_of_Nations Wealth of Nations], when ownership is separated from [[management]] (i.e. the actual production process required to obtain the capital), the latter will [[inevitably]] begin to neglect the interests of the former, creating dysfunction within the company. Some maintain that recent [[events]] in [http://en.wikipedia.org/wiki/Corporate_America corporate America] may serve to reinforce Smith's [[warnings]] about the dangers of legally protected [http://en.wikipedia.org/wiki/Collectivist collectivist] [[hierarchies]]. [http://en.wikipedia.org/wiki/Corporation]

As [http://en.wikipedia.org/wiki/Adam_Smith Adam Smith] pointed out in the [http://en.wikipedia.org/wiki/Wealth_of_Nations Wealth of Nations], when ownership is separated from [[management]] (i.e. the actual production process required to obtain the capital), the latter will [[inevitably]] begin to neglect the interests of the former, creating dysfunction within the company. Some maintain that recent [[events]] in [http://en.wikipedia.org/wiki/Corporate_America corporate America] may serve to reinforce Smith's [[warnings]] about the dangers of legally protected [http://en.wikipedia.org/wiki/Collectivist collectivist] [[hierarchies]]. [http://en.wikipedia.org/wiki/Corporation]